A mortgage bridge loan is a way of taking out a loan for a short period of time. The money can be used to cover the costs of the property or even the development of the property while waiting for approval on a more substantial and long term loan. Using this kind of loan is a good way of ensuring that a business property has the funding that it needs to start becoming financially viable. These types of loans are not difficult to find, but it may be wise to examine all of the details before entering into a loan that has such a short term. No business wants to find itself in a situation of having a loan that does not have enough of a bridge. Ensure that the loan will cover financing until a longer term loan can be financed.A Mortgage Bridge Loan vs. Conventional Commercial Loans· Length of Loan: This loan is over an extremely short period of time when compared to the usual twenty or thirty years on a conventional commercial mortgage. The usual term is between 30 and 90 days, although you may be able to negotiate a longer period of time of up to a year, if you deem it wise for your business finances.· Interest Rates: The interest rates on a short term loan are usually much higher than the interest that is levied on a long term commercial mortgage loan. It can be up to double the amount of interest, but is usually somewhere between 10 and 15%. It is for that reason that many lending institutions are willing to approve mortgage bridge loans. The rate of return on investment for a financier is much higher, and contrary to popular opinion, the loans are relatively risk free.· Approval of Loans: It takes a much shorter period of time to be approved than a conventional loan. This is because the evaluation process is somewhat truncated. Conventional commercial loans are usually calculated on the value of the property, plus the value of the area in which the property is located, as well as the value of the improvements on the property. Conventional loans look at the future return on the investment, while a mortgage bridging loan is usually judged on the value of the property alone.· Percentage of Loan: A mortgage bridge loan may not offer the same amount of financing that a conventional loans odes, simply because it is based on the actual value of the property without any improvements. It is a way of protecting the lender against a defaulted loan, so the value of the loan is often not even close to the entire value of the property.· Credit Scoring: One of the biggest advantages with this kind of loan is the relatively minimal credit checks that are done on the applicant. Conventional loans often seek to get a personal guarantee for the loan while mortgage bridge loans are happy to accept the actual property as they only security.There is a certain amount of risk involved in taking out a mortgage bridge loan, but it is there for a reason and can be a stop gap and a way of obtaining finance in the interim.
Finding the right Small Business ERP for your company
Small Business ERP is a unique category of enterprise software. It typically needs to have all the functionality of large corporate ERP software, but it needs to have as few clicks and screens as possible to ensure that the users are not overburdened with a lot of time spent entering data. The size of the business does not necessarily change the functionality required in the software. Rather, the small company often has a need for higher efficiency since they cannot afford the manpower to maintain the system.When you look at ERP software, there are three tiers of applications. Tier 1 is large multi-national software solutions, such as Oracle, SAP, and JD Edwards. Tier 2 is the mid-market level. These applications are suitable to businesses in the range of 50M to 250M. This is the sweet spot of the market. Like any bell curve, the mid-market has both the most customers, as well as the most product offerings. The last tier is the Tier 3 offerings which is the small business ERP category. These are systems suitable for 1 person start-ups to about the $50M level, although some of these products become inefficient if they have more than 20 users on the system. So while they claim to be Small Business ERP offerings, they are for the smallest of companies.Things to look for in Small Business ERP
When evaluating small business ERP solutions, it is important that you properly screen the potential software candidates to ensure you get a software that fits your business. If you don’t you will run into many different issues. Here are some tips:1. Make sure that the small business ERP software you are looking at fits into your niche.
2. Make sure that the data entry is simple and efficient
3. Make sure that the database platform can be managed by you or your staff
4. Look at the support offerings of the small business ERP provider to ensure that it is tailored to your needs
5. Determine that the small business ERP reseller provides enough training to properly get your staff up and runningLet’s discuss these points. First you need to make sure that the software you are looking at fits within the business model or industry that you work within. A retail store should not use a software designed for distributor. See what other customers that the software provider has worked with in the past and ask for specific examples of companies in your industry.You need to make sure that the users do not become slaves to the system. Make sure that the data entry screens are simple, efficient and do not require a lot of bouncing around to other screens to input simple things such as invoices or purchase orders.The heart of the system is the database. You need to make sure that the database does not require a full-time system admin to maintain it. It should be designed to be self maintaining and easily managed. Learn a little bit of the technical requirements from the Small Business ERP solution provider. You do not want to be in the situation where you need to bring in a specialized database administrator if later something goes wrong.Small Business ERP should have support designed for you the small business owner. You should easily be able to call in and immediately speak to a rep for support. You don’t want to have to wait for days to get answers. Be careful of small systems with small support staffs. Especially be wary where the system is developed and maintained by one or two people. Yes, they are also a small business, but it will be a big problem when they are not available to assist you.Lastly, you and your staff need to have enough training to properly operate the application. Do not skimp on this point. You need more training than you think. In fact, it would be good to plan on training to go live and at least one other training session a month after go-live to answer any questions and resolve any problems from a lack of knowledge. You won’t become experts on the system in a day, so plan on future training sessions.The future of Small Business ERP
The future of Small Business ERP seems to be one of two paths. There are those systems that will continue to be operating on a small network of computers and do quite well on them, such as QuickBooks or DBA Software. The other path is that of small business ERP companies such as NetSuite, who are leading the charge to bring small business ERP to the cloud. This means that you will have access to the application through a browser and no installed software will exist on your site. You are licensing access to a system that stores your data remotely and operates via an internet connection.People often are concerned with this model as your data lives somewhere else. The fact of the matter is it is probably safer there than on a computer sitting in your back room. The data center security policies and the high-levels of authentication that are enforced by cloud computing providers truly lock down your data and its accessibility. Whereas your server in your back room is often open to anyone who happens to wonder by. This seems to be riskier. Nonetheless, whichever path you choose, you can be assured that the small business ERP industry is continuing to grow and develop.